Lithuanian Prime Minister Gintautas Paluckas has resigned following investigations into his business dealings, which prompted widespread protests in the Baltic country’s capital, calling for his resignation. President Gitanas Nauseda announced Paluckas’ resignation to the media on Thursday morning. Paluckas confirmed the news in a statement sent by his Social Democrat Party.
Paluckas’ resignation is likely to bring down the entire government, with his cabinet expected to also resign. New coalition talks are expected to start soon. This development comes at a precarious time for Lithuania, with a planned joint military exercise between its neighbors, Russia and Belarus, scheduled to take place in the coming weeks.
Paluckas has faced scandals over his business dealings, including some that occurred over a decade ago. Media investigations revealed that he had never paid a significant part of a 16,500-euro fine after being convicted in 2012 of mishandling the bidding process for Vilnius’s rat extermination services. Paluckas was sentenced to two years in prison but was ultimately not imprisoned.
Further investigations linked Paluckas to questionable loans, ties to offshore companies, and real estate deals that appear to have personally benefited him. One investigation focused on UAB Garnis, a company co-founded by Paluckas, which received a €200,000 soft loan from ILTE, Lithuania’s state-owned development bank. Another investigation examined UAB Sagerta, a company Paluckas acquired in 2013, which received loans from UAB Uni Trading, a firm with opaque ownership.
Paluckas has denied any wrongdoing, calling the attacks on his business dealings part of a “coordinated attack” by political opponents. President Nauseda had given Paluckas two weeks to explain his business dealings or consider stepping down, amid mounting political pressure and ongoing investigations.
Lithuania’s president has been a strong supporter of Ukraine, and the Baltic country has long been fearful of Russian expansionism. In May, Lithuania initiated legal proceedings against Belarus at the International Court of Justice, accusing it of being behind a wave of “illegal migration” into the country.